Lawgist9Formation of General Insurance Corporation of India
(1) As soon as may be after the commencement of this Act, the Central Government shall form a Government company in accordance with the provisions of the Companies Act, to be known as the General Insurance Corporation of India for the purpose of superintending, controlling and carrying on the business of general insurance:
1[Provided that on and from the commencement of the General Insurance Business (Nationalisation) Amendment Act, 2002, the provisions of this sub-section shall have effect as if for the words "superintending, controlling and carrying on the business of general insurance", the words "carrying on re-insurance business" had been substituted.]
(2) The authorised capital of the Corporation shall be 2[rupees two hundred and fifty crores, divided into two hundred and fifty lakhs fully paid-up shares] of one hundred rupees each, out of which rupees five crores shall be the initial subscribed capital of the Corporation:
1[Provided that the Central Government may, by notification, increase or reduce the authorised capital or subscribed capital, as the case may be, as it deems fit.]
(3) Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), it shall not be necessary to add the word "Limited" as the last word of the name of the Corporation.
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1. The proviso inserted by Act 40 of 2002, s. 2 (w.e.f. 21-3-2003).
2. Subs. by Act 38 of 1989, s. 2, for "rupees seventy-five crores, divided into seventy-five lakhs fully paid-up shares" (w.e.f. 22-10-1989).
